The Maruti IPO has set a price range of Rs. 125 per share above the Floor price of Rs. 115. The subscription for Maruti IPO opened on June 12, 2003 and closed on June 19, 2003. The response to Maruti IPO was overwhelming within the subscription period, which led to an over-subscription of the public offerings of Maruti by more than ten times.
The government decided to shell out 85 percent shares of IPO to the non-institutional investors and 15 percent shares to the non-institutional high net-worth individuals. Consequently, government would get Rs.993 crores for 7.94 crores shares.
But SEBI recommended that 60 percent can be given to the institutional investors but at least 40 percent should be allotted for the retail investors as well. The government has allotted 60 percent shares to the retail investors and 40 percent shares to the institutional investors. The shares were allotted to the individuals on a pro rata basis.
The IPO of Maruti is claimed to be one of the biggest capital market transactions in recent years in India and also the largest Book Built IPO that has been implanted in India till date. Maruti IPO received more than 300,000 applications which is a record in the history of IPO in India. The majority of applicants to these comprise of the Indian retail investors. They received the allotments on the basis of the price range already fixed by the government. A huge number of institutional investors also paid a lot of importance in investing in Maruti. The over-subscription of Maruti IPO accounted for surplus shares of around 72 lacs which led to an increase in the allotment of the number of shares to the IPO of Maruti. Apart from the Indian investors, a huge number of international investors have also bid for shares of Maruti IPO.
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